Are CEOs staying in their positions for longer?

The average CEO tenure may be increasing, at least among high-level companies, according to a study recently released by The Conference Board. Companies should think about what this means for how they handle the placement of their own c-level staff

The rate of CEOs being dismissed only decreased by .2 percent in 2013. This could show that the value of CEOs is growing, as it continues a streak that goes back at least to 2011 of fewer CEOs being asked to leave.

Moreover, as the summary of the report describes, more than half of the Fortune 500 CEOs who left their position last year did so after a special "transition period" in which they stayed on the company's board. This means that even when it's time for a CEO's tenure to conclude, they have more options. 

One of the authors of the study, Matteo Tonello, said that this was in part due to the confidence inspired by a stronger economy. However, Tonello also cautions that it's important to keep things in perspective and not become too complacent.

"Being prepared for a change of leadership should always be a top priority for directors, irrespective of the confidence in the moment," he said in a press statement.

Longer CEO stays may affect related issues, such as how their compensation would change over time. USA Today reported on the trend of high-ranking CEOs foregoing salaries entirely in favor of stock options in the company. If CEOs stay in their positions for longer, you might have to consider how to best suit someone's lengthier stay at the head of your company.

Placing a CEO can be made easier with a recruitment consultant, especially if the trend of increasing CEO tenure continues.

Finding people is easy, but finding the RIGHT people is not. YES Partners helps companies FIND the right people – for all company functions, across many industries and globally.

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